Posts Tagged ‘Investing Articles’

Get Started on the Forex Market by Using XForex

April 24th, 2017 No comments

Something that many people do not understand about the Forex market is the fact that it is impossible for you to trade directly on the market. Every trade that you place needs to be done so through a qualified broker, either online or off-line. Although it is certainly possible for you to choose an off-line program, it is much more convenient for you to choose one online and have your own personal account available. It will then be possible for you to trade in your own home, using your own computer.

There are a number of different choices that are available for you as far as the forex platform that you are going to use. The one that we are currently using, and have been recommending to others is xForex. There are a number of different reasons why we enjoy using this platform, and perhaps too many for us to cover in this one article. That is why we decided to narrow it down to the top three benefits that you will receive whenever you use this online platform for your own trading practices.

Customer service is one of the most important things that you’re going to have look for whenever choosing an online platform for yourself. As it turns out, xForex does an excellent job of providing you with this customer service and they do so 24 hours a day. This could alleviate a lot of frustrations if you experience problems during the off hours.

Whenever we test a platform, customer service is one of the first things that we look for. We typically send them several different questions in order to find out how timely they respond and how accurately they respond. This platform was able to answer all of our questions accurately, and to do so even whenever we e-mailed them during the middle of the night. Not only do they have e-mail access available, you can also pick up a phone and call them or use their online chat.

Another thing that we look for is the availability of a low starting rate so that you do not have to put all of your money into the account from the very beginning. This particular platform at a very attractive minimum deposit of $100. This enables anybody to get started in trading on forex, without having to worry about putting all of their money on the line at the very beginning. You can find your account with a credit card and have the funds instantly available to you.

The final thing that we like about the xForex platform is that they are very user friendly for people who are just getting started. Through a series of online tutorials that is available on their website, you can not only get comfortable with trading but you can learn everything that you need to know about it. Take your time and look through these tutorials, they will benefit you.

You certainly do have a lot of different choices whenever it comes to the platform that you are going to use. By choosing a reliable provider, such as xForex, you will be a trading in no time at all.

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Tax Deferral as an Investment Strategy

April 7th, 2017 Comments off

Deferring taxes on your income is an investment strategy in which income taxes are paid at a later date for money invested now. The benefit of tax deferral is that it provides more money for you to invest now.

For example, you are able to deduct $1000 from your taxable income this year and invest it into an interest bearing account, and in return, this deduction allows you to pay approximately $200 less in income taxes for the current year. You now have $200 more than if you had not invested the $1000. If you add the $200 you deferred in taxes to the $1000 you have already invested, you now have $1200 growing in your investment.

Another type of tax deferral used by investors is the deferment of taxes paid on interest earned. The dollars invested have already been taxed, but any interest earned is tax free.

Investment Vehicles Tax deferred accounts shelter your money from taxes until you begin making withdrawals in the later part of your life, when you’re likely to be in a lower tax bracket. The type of investment vehicles best for you depends on your situation.

You could opt for the plan 401(k). This vehicle is open for you only if your employer offers it. This will allow you to make contributions that are deductible by tax but grow as deferred tax until you start withdrawing the money. Depending on your employer, your 401(k) might come with a bonus, when your employers add to your contributions, doubling it. You could make anywhere between 25%-100% on your contributions, if your employer adds to it.

By using the 401(k) planning, you could add more to your retirement plan, than most other plans. You can add around $9,500 to your retirement plan, and your employer can add another $30,000 every year. You can also add the yearly bonuses that you receive to this plan to help your retirement money grow even faster. If you leave your job or wish for more freedom with your money, you can always roll your assets over into an IRA account.

A 401 (K) may work for a beginner at investing, someone who does not know how to invest in stocks or which are the best stocks to invest in.

Another type of plan offered by an employer is the 403 (b). This plan is for public school and non-profit organization employees and it is tax deductible and tax deferred. You can contribute up to $9,500 of your annual gross income each year to this plan.

The other plan is the 403(b) which again has to be offered by your employer. This plan is meant for employees who work in public educational centers or other non profit organizations. Similarly in this plan the money is tax deductible and the investment is tax deferred and you can contribute up to $9,500 yearly. With this plan however you need to be aware of certain risks. You have to invest the money in a tax sheltered annuity which will result in high sale charges and the rates they give will not always be guaranteed.

Any person who has an earned income or the spouse of somebody who has an earned income can open their own IRA and add up to $2000 to it yearly. The earnings are not subjected to tax unless you start withdrawing from the account, but you will be charged penalty if you start withdrawing before the age of 59 and a half. However, even if your money is not tax deductible, they will be tax deferred.

Under the IRA schemes, there are different investment options, but it all depends on the custodian of the money. It is with the IRA that you will have the maximum options as compared to the other employer sponsored investment schemes.

The Keough plan is available to individuals who work for an unincorporated business or are self-employed. You can contribute up to 25% of your earned income up to a maximum of $30,000. All contributions are tax deductible and your earnings accrue tax deferred. You can contribute much more per year with a Keough than with an IRA. You can elect to contribute a fixed percentage annually, a different percentage annually, or a fixed amount which you decide on. There are three types of Keough plans available and a lawyer can assist you in setting one up.

The Simplified Employee Plan or the SEP is the other type of investment vehicle available. However, this scheme is open only to those business companies that employ les than twenty five people and at least half of them have to be a part of this plan. Under this plan, you can contribute up to $7,000 and the employee ca pay the rest with a maximum of $30,000.

All the above mentioned investment vehicles are divided under these two categories: Qualified and Non – qualified plans.

The 401(k) and the 403(b) are the plans that are qualified. These are those employer sponsored investment plans that offer good benefits but depend upon the kind of plan that the employer draws up. For example, the 403(b) plan needs you to invest the money in tax sheltered annuities. As compared to this, 401(k) offers a wider selection of more conventional investment options, such as fixed interest annuities, company stocks etc. but is yet restricted as compared to the non – qualified plans.

The non – qualified plans allow more freedom regarding when or if you want to make a contribution. All IRA’s are a part of this category. Usually investors find it easier to work with non – qualified plans than with qualified ones, they require less reporting and regulating and investors have more control over their investments this way. Often contributions made to these plans can be deducted from tax as a business expense.

Most investments made with the vehicles we have been discussing fall into one of two asset categories: The first is debt and the second is equity. As an investor, you are either an owner or a creditor. Equity owners are entitled to all free cash flows that exceed the debt payment obligations of the underlying economic entity. Creditors receive priority in agreed-upon future interest and principal payments.

When choosing a retirement plan, you want to be certain of the types of investments permitted with your plan. Do not open an account that does not give you the freedom to choose your own investment options, whether they are debt or equity investments.

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Details Of Google Stock Price

March 17th, 2017 Comments off

Many analysts debated when Google stock price started out at an initial public offering for only $85 per share back in August 2004.

So much of Google’s value was intellectual property as opposed to real property and the market was not used to the idea that internet companies could be so valuable.

Well in hindsight there was certainly no reason for debate as five years later, the Google stock price is five times its initial value and the company as a whole has a market value of $175 billion dollars.

Do you know that google stock price rose to over $100 on their very first day hit the market and then doubled within 3 months after that.

Now that analyst debate on different things on Google company, they debate on a matter of how much more it will grow and how quickly.

Though the early growth of the company was unsustainable and unrealistic, but over the past few years their stocks has settled into a traditional pattern growth, but with the exception of the recession which has been detrimental the entire marketplace and tech sector.

Investors has sown that they are very confident with Google company, even though there is no stock comes with guarantee, but Google seems will not likely to significantly lose value, at least not relative to the market as a whole.

You can find Google’s up to date stock price at any time by searching using company’s symbol “GOOG”.

It is also important to note that there are two types of Google stock, Preferred and Common. Preferred stock prices are traditionally higher because these stock holders are paid dividends before dividends are distributed to all the common stock holders. Both types have voting rights.

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The ABCs of Learning Forex

March 10th, 2017 Comments off

If you want to learn forex the right way, you are going to have a make a decision as to how you want to properly analyze the market. You need to choose between technical analysis and fundamental analysis.

I’m sure you can find a few traders who are equally great in both categories but for the most part, traders usually stick to only one form of analysis as their MO.

However, there are still plenty of forex traders who decide not to choose either of the methods. This sounds completely irrational but most would rather trade from the gut than really study how to trade market properly, so you can enjoy long term success in it.

I know this may sound crazy to you, but there are a ton of traders who don’t have the tiniest grasp of some basic fundamentals, such as news events. To give you an idea, many traders don’t have a clue as to why the Non-Farm Payroll figures or housing foreclosures are so critical. It’s a sad state of affairs.

Many traders arent even sure whether an increase or decrease in interest rates will make the price of their currency rise or fall.

What makes this even worse is the fact that many traders never really learn about the trading the forex market from a technical perspective. To some of these traders, the entire idea of using technical analysis is to put every single indicator on your chart, and somehow hope that your indicators are pointing you in the right direction.

The reality is that indicators don’t provide anything of value to a technical analyst. Can you think of why that is? It’s really simple. It’s because all of them are completely 100% lagging. The truth is that an indicator is really only good for telling you something that has already happened, not what will happen, which is what you need to know.

If you want to truly understand all about technical analysis, then I recommend that you clean your charts of any indicators and begin to study up on price action.

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Day Trading Forex By Using Common Sense

March 9th, 2017 Comments off

I really know that the concept of learning how to day trade the forex market is extremely puzzling to most traders. They don’t quite get how the entire process works. Unfortunately, many traders feel like you have to be super intelligent to be able to pull it off. I guess I can understand why traders would feel that way. I think most know that most people that tried to day trade the forex market, haven’t done so very well.

But in actuality, there is no reason why you cant have any success. Trust me you dont need to have a degree from an Ivy League college.

Unfortunately, so many traders just flat out cannot handle their emotions when they trade. I don’t care which trading method you choose to use. I don’t care if the trade is working or not, if you can’t get a hold of your emotions, you will never success in this business. You can bank on it.

There is no doubt that the two biggest emotions that traders have to deal with during a trade are fear and greed. Greed is something that happens to a trader when they usually have made winning trades in a row. There is this feeling of overconfidence. These traders feel as if the own and control the market. They feels as if they are kings.

Fear is the exact opposite of greed. This happens from a severe lack of confidence. They don’t have a grasp of what is actually going on in the market. They don’t really know the underlying reason why they are taking the trades which they are taking.

I believe the reason why this happens is because many traders really don’t want to hold themselves accountable for what they are doing. They would much prefer to let indicators do the trade for them. Traders have to stop doing this.

It just not going to cut it. If you are actually planning to make money in the forex market, you better be ready to comprehend what actually makes the market tick. This is especially true when you are talking about day trading.

It all starts with grasping the concept of price action. You can start today by letting go of every indicator that are you used to using.

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